Correlation Between Auris Medical and Novo Nordisk
Can any of the company-specific risk be diversified away by investing in both Auris Medical and Novo Nordisk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Auris Medical and Novo Nordisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auris Medical Holding and Novo Nordisk AS, you can compare the effects of market volatilities on Auris Medical and Novo Nordisk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Auris Medical with a short position of Novo Nordisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auris Medical and Novo Nordisk.
Diversification Opportunities for Auris Medical and Novo Nordisk
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Auris and Novo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Auris Medical Holding and Novo Nordisk AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Nordisk AS and Auris Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Auris Medical Holding are associated (or correlated) with Novo Nordisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Nordisk AS has no effect on the direction of Auris Medical i.e., Auris Medical and Novo Nordisk go up and down completely randomly.
Pair Corralation between Auris Medical and Novo Nordisk
If you would invest 9,305 in Novo Nordisk AS on January 17, 2024 and sell it today you would earn a total of 3,085 from holding Novo Nordisk AS or generate 33.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Auris Medical Holding vs. Novo Nordisk AS
Performance |
| Timeline |
| Auris Medical Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Novo Nordisk AS |
Auris Medical and Novo Nordisk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auris Medical and Novo Nordisk
The main advantage of trading using opposite Auris Medical and Novo Nordisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auris Medical position performs unexpectedly, Novo Nordisk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Novo Nordisk will offset losses from the drop in Novo Nordisk's long position.| Auris Medical vs. United Airlines Holdings | Auris Medical vs. NETGEAR | Auris Medical vs. LB Foster | Auris Medical vs. Arrow Electronics |
| Novo Nordisk vs. PetIQ Inc | Novo Nordisk vs. Emergent Biosolutions | Novo Nordisk vs. Neurocrine Biosciences | Novo Nordisk vs. Haleon plc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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